Question

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux’s accounting records is provided also. DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) 2018 2017 Assets Cash $ 37 $ 22 Accounts receivable 46 51 Less: Allowance for uncollectible accounts (4 ) (3 ) Dividends receivable 6 5 Inventory 59 52 Long-term investment 19 12 Land 74 42 Buildings and equipment 223 254 Less: Accumulated depreciation (27 ) (54 ) $ 433 $ 381 Liabilities Accounts payable $ 15 $ 24 Salaries payable 6 8 Interest payable 8 6 Income tax payable 9 11 Notes payable 32 0 Bonds payable 99 72 Less: Discount on bonds (4 ) (7 ) Shareholders' Equity Common stock 212 202 Paid-in capital—excess of par 23 22 Retained earnings 43 43 Less: Treasury stock (10 ) 0 $ 433 $ 381 DUX COMPANY Income Statement For Year Ended December 31, 2018 ($ in 000s) Revenues Sales revenue $ 217 Dividend revenue 5 $ 222 Expenses Cost of goods sold 122 Salaries expense 27 Depreciation expense 9 Bad debt expense 1 Interest expense 10 Loss on sale of building 7 Income tax expense 19 195 Net income $ 27 Additional information from the accounting records: A building that originally cost $48,000, and which was three-fourths depreciated, was sold for $5,000. The common stock of Byrd Corporation was purchased for $7,000 as a long-term investment. Property was acquired by issuing a 12%, seven-year, $32,000 note payable to the seller. New equipment was purchased for $17,000 cash. On January 1, 2018, bonds were sold at their $27,000 face value. On January 19, Dux issued a 4% stock dividend (1,000 shares). The market price of the $10 par value common stock was $11 per share at that time. Cash dividends of $16,000 were paid to shareholders. On November 20,000 shares of common stock were repurchased as treasury stock at a cost of $10,000. Required: Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).))

Answer 1